Property Management
A Michigan property manager's 'operating budget' for a rental property should include which of the following?
AOnly the mortgage payments
BProjected income, vacancies, operating expenses, and reserves for replacement✓ Correct
COnly the annual property tax
DOnly the management fee
Explanation
A comprehensive operating budget for a Michigan rental property includes projected gross income, vacancy and credit losses, all operating expenses (taxes, insurance, maintenance, management fees), debt service, and capital reserves for replacement of major systems.
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